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Nandini Ghee Becomes Costlier: Here’s Why Price Was Hiked By Rs 90 Despite GST Cut
Nandini Ghee Becomes Costlier: Here’s Why Price Was Hiked By Rs 90 Despite GST Cut
Nandini Ghee Price Hike: In a sudden move, the Karnataka Milk Federation, the cooperative that manages dairy products under the Nandini brand, has sharply hiked ghee price by Rs 90 to Rs 700 per litre. The move comes as a surprise, given the tax rate cut on dairy products under Goods and Services Tax (GST) from September 22.
Earlier, the price of ghee was Rs 610 per litre, which was reduced Rs 40 from Rs 650 per litre after GST rate cut. Apart from ghee, prices of other products have remained unchanged.
Bangalore Urban, Rural & Ramanagara District Co-operative Milk Producers Societies Union Ltd (Bamul) Chairman DK Suresh explained the reason behind the price hike, stating that cooperative societies are facing stark looses, according to a repot of India Today.
“We are currently producing around 95 lakh to 1 crore litres of milk daily, but are able to sell only about 50 lakh litres. The government has fixed Rs. 4 per litre as incentive for 50 lakh litres, which we support. But we still have to purchase the remaining milk and pay Rs. 4, and that results in losses," he said.
“There's a shortage of butter and ghee across the country. Our prices were already the lowest, and even after the revision, they're still below other brands that sell for Rs 700 to Rs 900. We ensure 100% quality at every stage — from milk collection to ghee production. Despite the price hike, Nandini ghee continues to be the most affordable option in the market."
The Centre cut GST on ghee from 12 per cent to 5 per cent, following which dairy cooperatives have readjusted the prices of their products.
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Key GST Rate Changes on Dairy Products (From September 22):
Source: News18
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